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The short answer is yes. Social media marketing is very effective and we will uncover the three main reasons why. 

Image of a group of people on their phones with social media icons emanating from the phone.

With billions of people around the world using social media, it offers you an enormous pool of potential customers. Really, there has never been a better time to adopt social media marketing.

What makes it so great though?

Nowadays there are so many ways you can market your business and achieve great results. But we live in a fast-paced world where things change quickly, so what works today might not work tomorrow.

Social media offers many opportunities for businesses to better reach their goals in a fast-changing world. Seriously, if your business isn’t on social media, you’re missing out big time!

In this article we will focus on the three key reasons that make social media marketing so effective.

By the end of reading this article you will hopefully be convinced that your business should be marketing on social media – right now.

Benefits of social media marketing

Before diving into what makes it such an effective marketing strategy, let’s have a look at what you can get out of social media marketing.

There are many incredible benefits of using social media marketing. Here are some of the most amazing benefits:

  • Raises brand awareness
  • Increases inbound traffic
  • Helps target and retain ideal customers
  • Improves customer relationships
  • Boosts conversions
  • Solid return on investment (ROI)

If done right, you can greatly benefit from social media marketing.

Now let’s discover the three main reasons why you should be advertising on social media.

Man in pink suit on pink background with a bear mask on takes a social media selfie.

1. Target specific customers

How to get more potential customers? This is one of the most asked questions we hear from business owners. Considering that half the world’s population is active on social media, this is a good place to get more customers.

But that there are billions of potential customers isn’t the main reason why social media marketing is so effective. The main reason is the ability to create highly targeted ads.

Social media marketing allows you to highly target specific users.

You decide what will be shown to whom and at what time. This ensures that the right message will be conveyed to the right users at the right time. Using highly targeted ads allows you to filter out irrelevant users and only include people that are relevant to your business.

As a result, it avoids waste ad spend, making social media marketing a highly cost-effective method.

Another great benefit of targeting specific user groups is the intimate customer relationships you can form with them. Because you focus your ad campaigns based on who they are and what they like, social media marketing is powerful when it comes to building and improving customer relationships.

Campaigns are commonly designed based on customer demographics such as age, gender, location, behaviours, interests, platform interactions and more. This data is available to marketers like us, allowing us to incorporate more substance into our campaigns. On top of that, showing relevant information to relevant people allows for maximum reach and best possible results.

2. Build your customer base

The great thing about targeting specific audiences is that you can save the data and use it to turn potential customers into loyal buyers.

Most social media platforms have different campaign objectives to choose from, starting with brand awareness and reach to consideration and conversion.

This allows marketers to build on audiences and create a marketing loop from getting potential customers interested to converting and retaining them.

Why is customer retention so important?

Higher retention rates allow you to reach your business goals faster, because already the slightest increase in customers retention rate increases your profitability massively.

It’s also much more cost-effective to keeping existing customers coming back, in fact the cost of retaining a customer instead of acquiring a new one can be 25x less.

If you’re interested to finding out more about customer retention, check out these 5 must-have retention strategies we identified!

Social media marketing is one great method to improve customer retention. For example, you can retarget a specific audience that you showed a campaign to 100 days ago, resparking their interest with an irresistible offer.

Or you can place more tempting offers on landing pages that you want to send traffic to, making sure the leads generated from your social media campaigns are most likely to make a purchase.

Woman popping her head through a wall of paper. Exciting face and interested in an offer.

3. Measure return on investment

The final key benefit of social media marketing is the ability to directly measure ROI from campaigns. This is huge!

On many social media networks such as Facebook and Instagram, you can access data from your ad campaigns performance right in the manager platform. This information gives you clear insights into return on ad spend (ROAS), cost per click, cost per website purchase, and much more.

The ability to directly track how campaigns are performing makes it easy to stop poorly performing ads and boost well-performing ones, maximising your ROI.

We also find that if you slightly tweak ad campaigns and play around with different variations and formats during the time a campaign runs, you get better results.

There you go, three key reasons why social media marketing works. Whether you want to add another sales channel, increase your customers base, get more traffic and leads, or simply want to sustainably grow your business – start incorporating social media advertising in your marketing strategy!

Social media not your strength?
We can help you get the most out of social media marketing!

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